Equifax Announces 12.5 Percent Revenue Growth for 1999

Second Quarter / Performance on Track with Long-Term Objectives ATLANTA (PROTEXT) - New Management Team, Knowledge Engineering, Consumer Services and Equifax Secure Help Position Company for Future Equifax Inc. (NYSE: EFX) today reported record 1999 second quarter results driven by double-digit revenue growth, keeping pace with the company's long-term business objectives. Second quarter highlights, led by the strong performance of Equifax Payment Services, include: * Revenues for the quarter ending June 30, 1999, climbed 12.5 percent to $442.6 million compared with the prior year period. * Operating income was $96.9 million versus $92.2 million in second quarter 1998. * Second quarter earnings per share increased 6 percent from $.35 to $.37. "Equifax continued to demonstrate solid operating results in the second quarter and first six months of 1999," said Thomas F. Chapman, Equifax's chairman and chief executive officer. "We remain focused on delivering results to meet our long-term business objectives even though certain business and market factors may impact our results during a particular quarter. We continue to make strategic investments to expand our capabilities to other markets through Equifax Knowledge Engineering, Equifax Secure and Equifax Consumer Services, our newest business focused on delivering products and services directly to consumers." During the quarter, the company's stock repurchase program remained active, with the Company purchasing over 900,000 shares of stock for $33.2 million. Approximately $217 million remained available for repurchase as of June 30, 1999. Equifax has continued to repurchase its stock during the third quarter of 1999. During the quarter Equifax incurred Year 2000 readiness expenses of about $5.0 million after tax, or $.035 per share. The 1998 acquisitions in Brazil diluted earnings by about $.02 per share. Revenue growth for the quarter, excluding acquisitions and divestitures, was in the mid-single digits. "Equifax also announced several strategic initiatives to position the company for the future," Chapman said. "We strengthened our executive management team in key areas of our business and signed agreements with several new customers, including Fininvest and GE Capital in Brazil. We also entered into partnership with the Sun-Netscape Alliance and introduced server certificates to help businesses secure their web sites for e-commerce over the Internet." BUSINESS RESULTS "Payment Services turned in a strong quarter with excellent performance from Card Solutions and Check Solutions," said Lee Kennedy, Equifax's president and chief operating officer. "Our core information business in the United States continues to demonstrate operating leverage and strong expense management. We are pleased with the improved performance in Europe. The economy in Brazil is strengthening, and both our processing and information businesses are performing well. And we are committed to more than doubling the number of cards processed in Brazil by year-end." Payment Services, which operates globally through Card Solutions and Check Solutions, increased revenue 23.5 percent to $163.6 million in the second quarter. Global Card Solutions is the leading provider of third-party, full-service processing solutions to credit unions and independent banks in the United States and commenced operations in the United Kingdom in June. The revenue increase in Payment Services was driven primarily by growth in new accounts, new customers and transactions processed in U.S. Card Solutions, as well as our card services business in Brazil which contributed revenue of $14 million for the quarter, and Check Solutions. Operating income of $30.6 million increased 27.7 percent as a result of continued growth of both Card Solutions and Check Solutions. For the quarter, revenue in North American Information Services of $196.8 million increased 1.4 percent versus second quarter last year. Revenue performance benefited from growth in U.S. Reporting Services, with increased sales across all industries served, partially offset by slightly lower revenue from marketing services. One risk management services customer elected to take its collections business in-house which impacted revenue during the quarter. Canadian revenue was down due to increased competition within its reporting business as well as the exchange rate. North American Information Services had operating income of $71.7 million, increasing 5.3 percent versus second quarter 1998. This group's operating income growth was in the low double digits, excluding our investments for the future with Knowledge Engineering and Equifax Secure, the business that enhances the security and privacy of Internet transactions. Revenue in Equifax Latin America (which does not include the Company's Payment Services operation in Brazil) was $32.5 million for the second quarter, with the recent acquisition of SCI in Brazil contributing revenue of $16 million. Operating income of $5.0 million in the second quarter of 1999 increased 16.1% versus second quarter 1998. The overall performance of the information business in Brazil exceeded expectations in local currency as Equifax is successfully integrating and managing the operations of this 1998 acquisition. Operating income in Chile and Argentina declined versus 1998 results due to the exchange rate in Chile and lower revenue. Equifax Europe revenue was $47.2 million versus $46.5 million in the second quarter 1998. This group's reported loss of $1.3 million for the quarter, although impacted by severance costs, continues the improvement from fourth quarter 1998 and first quarter 1999. Equifax is making progress in lowering the expense base in the U.K. and expects continued improvement throughout 1999 with a return to profitability in the third quarter. In addition, the sale of its minority interest in the Brazilian company Proceda, the sale of three small, non- strategic risk management offices in the United States, and interest income from dollar denominated deposits in Latin America resulted in a gain recorded as "Other Income" during the quarter which was partially offset by a higher effective tax rate associated with the sale of Proceda. Equifax (www.equifax.com), a worldwide leader in shaping global commerce, brings buyers and sellers together through its information management, transaction processing and knowledge- based businesses. Atlanta-based Equifax serves the financial services, retail, credit card, telecommunications/utilities, transportation, information technology and healthcare industries and government. Equifax adds knowledge, expertise, convenience and security to provide value-added solutions and processes for its customers wherever they do business, including the Internet and other networks. Entering its second century in business, Equifax employs about 13,000 associates in 18 countries with sales in almost 50 and has more than $1.7 billion in revenue. Statements in this press release that relate to Equifax's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include changes in worldwide and U.S. economic conditions that materially impact consumer spending and consumer debt, changes in demand for the Company's products and services, risks associated with the integration of acquisitions and other investments, and other factors discussed in the "Forward-looking Information" section in the management's discussion and analysis included at Part II, Item 7 in the Company's annual report on Form 10-K for the year ended December 31, 1998, and in the "Year 2000 Information" section in the management's discussion and analysis included at Part I, Item 2 in the Company's report on Form 10-Q for the first quarter of 1999. EQUIFAX INC. FINANCIAL HIGHLIGHTS (In thousands, except per share amounts) 2nd Quarter (Unaudited) Six Months (Unaudited) 1999 1998 1999 1998 Operating revenue $442,586 $393,464 $864,090 $746,558 Income before provision for income taxes: Operating income $96,880. $92,183 $185,690 $173,177 Other income, net(1) 8,540 649 9,022 1,370 Interest expense (15,291) (8,222) (30,426) (15,254) Income before income taxes 90,129 84,610 164,286 159,293 Provision for income taxes 38,023 33,978 68,279 63,926 Net income $52,106 $50,632 $96,007 $95,367 Net income per common share (diluted) $0.37 $0.35 $0.68 $0.66 Shares used in computing diluted earnings per share 140,528 144,430 141,086 144,545 (1) - In the second quarter of 1999, the Company sold its 34% interest in Proceda in Brazil and also sold three Risk Management offices in the U.S. The resulting gain of $7,095 has been included in Other income, net ($2,888 after tax, or $.02 per share). Operating revenue and operating income of the Company's reportable segments for the second quarter and first six months of 1999 and 1998 are as follows (1998 information has been restated to conform with the 1999 presentation): 2nd Quarter (Unaudited) Six months (Unaudited) Operating revenue: 1999 1998 1999 1998 North American Information Services $196,835 $194,127 $388,827 $374,434 Payment Services 163,602 132,504 314,731 250,467 Equifax Europe 47,220 46,458 93,273 83,204 Equifax Latin America 32,520 17,966 62,441 33,635 Other 2,409 2,409 4,818 4,818 $442,586 $393,464 $864,090 $746,558 Operating income: North American Information Services $71,696 $68,069 $137,375 $129,933 Payment Services 30,607 23,970 59,244 43,205 Equifax Europe (1,289) 4,732 (2,977) 7,887 Equifax Latin America 5,047 4,346 9,234 8,532 Other 2,217 2,217 4,434 4,432 Operating Contribution 108,278 103,334 207,310 193,989 General Corporate Expense (11,398) (11,151) (21,620) (20,812) $96,880 $92,183 $185,690 $173,177 CONTACT: Marietta Edmunds Zakas, Corp. VP, Communications of Equifax Inc., 404-885-8304 ots Original Text Service: Equifax Inc. Internet: http://www.newsaktuell.de Contact: Marietta Edmunds Zakas, Corp. VP, Communications of Equifax Inc., 404-885-8304 Web site: http://www.equifax.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT